Maravi

PAC report reveals that former deputy minister of foreign affairs owes govt K8.6m

PAC report reveals that former deputy minister of foreign affairs owes govt K8.6m
Written by Masuzyo Chakwe
Monday, December 01, 2008 3:52:16 AM

THE Public Accounts Committee (PAC) report has revealed that a former deputy minister at the Ministry of Foreign Affairs owes government K8.6 million after he went away with household items purchased for the house he was occupying.

And the report for Zambia’s mission in London revealed that irregular payment of airtime allowance totalling US$20,493.81 [K72,529,953] were paid to the High Commissioner and first secretary protocol.

According to the report for the second session of the 10th National Assembly, which is based on the Auditor General’s report for the financial year ending December 31, 2006, an examination of the financial and other records maintained at the Ministry of Foreign Affairs carried out in March 2007 revealed that during the period under review, the ministry purchased a fridge, a microwave oven and an electric stove at a total cost of K13,690,000 for the deputy minister’s official residence.

The report stated that it was observed however that, the former deputy minister went away with the items.

The report stated that the ministry wrote to the former deputy minister on the matter and he in turn paid an amount of K5 million in August 2007 towards the cost of the items leaving a balance of K8,690,000.

The report also stated that there were no receipt and disposal details in respect of store items costing K75,383,500 procured during the period under review contrary to the Public Stores Regulation number 16.

It stated that imprest in amounts totalling K615,568,011 involving 115 transactions had not been retired as of March 2007 contrary to Financial Regulation number 96(1).

The report also stated that an amount of K5 million paid to an officer in December 2005 had not been recovered as of August 2007 and the officer had since been dismissed from the civil service and his terminal benefits were paid in full.

It stated that 14 cheques in respect of third party payments amounting to K284,438,642 prepared during the period under review had not been collected by the recipient institutions as of November 2007.

And in the controlling officers’ submissions, the ministry informed the committee that the balance of K8,690,000 had not yet been paid by the former deputy minister.

“The ministry was however following up the matter with the former deputy minister and the matter had also been referred to the Office of the Attorney General for his legal advice on how the ministry should proceed on the matter should the former minister fail to pay the balance,” stated the report.

The report stated that controlling officer informed the committee that out of the 11 stores items costing K75,383,500 which were not accounted for, the receipts for six payments amounting to K41,904,500 had since been located.

It stated that four receipts amounting to K33,479,000 were yet to be traced as the procurement officer who handled the payments was currently on suspension.

The report stated that the head of the procurement had now put measures in place to avoid the same occurrences.

It stated that the controlled officer informed the committee that there was a total unretired imprest of K605,731,874.

The report also stated that the controlling officer informed the committee that it was unfortunate that the officer did not report the unrecovered loan as stipulated on the pay slip where all officers were supposed to report any unrecovered loans or advances.

“However, it was also unfortunate that as at the time of paying out the benefits, the amount was not enough to recover the K5 million household loan. The ministry therefore wished to appeal to the committee to have the amount charged to public funds,” it stated.

It stated that the committee was informed that currently all terminal payments were not being paid until the beneficiary was cleared of all debts.

The report stated that the committee was informed that all the 14 third party payments in respects of NAPSA, Pension and ZISC were delivered to respective recipients and documents were available for verification.

It stated that the cheques in question were not being collected by the various institutions despite writing to them in January 2007.

“However, the situation had since improved as the ministry either delivers the cheques or informs the recipient institutions,” it stated.

And the report for the London mission revealed that the High Commissioner was paid US$11,826.87 [K40,985,095] in excess of his entitlement while the first secretary protocol who was not entitled was paid US$7,466.94 [K27,189,146] during the period under review.

The report also stated that a scrutiny of records revealed that the mission engaged 16 local staff against an approved establishment of 11 resulting in an excess of five staff contrary to Foreign Service Regulations and Conditions of Service 2004 and in this regard an excess of 89,808 pounds [K608,032,3330] was paid as personal emoluments in 2006.

The report also revealed that during the year under review, the mission had outstanding bills totalling 316,868.31 pounds [K2,471,572,818] out of which 276,379.85 pounds [K2,155,762,830] was paid leaving a balance of 40,488.46 pounds [K315,809,988] outstanding.

It also stated that a total amount of US$190,368.83 [K694,601,764] was paid as rentals between January and December 2006 exceeding the mission staff entitlements by US$38,218.92 [K133,766,220] and as at October 2007, only US$1,000 had been recovered leaving a balance of US$37,218.92 [K130,266,220].

The report stated that contrary to the terms and conditions, which stipulate that an officer shall not obtain an advance while one was running, five officers were paid subsequent advances in amounts totalling 65,981.15 pounds [K527,633,043] while previous advances were still outstanding.

It stated that there were two non-runner motor vehicles, a Mercedez Benz registration number 282 D277 and Toyota Hiace minibus registration number 282 D226 parked at the High Commissioner’s residence which needed boarding and at the time of the audit the vehicles had not been boarded.

“A visit at the residence also revealed that there were a lot of unserviceable stores items piled up in the garage requiring boarding. In 2006, the mission engaged a contractor to rehabilitate the chancery building at the contract price of 225,690 pounds [K1,309,938,614]. The works involved interior painting, decorations, electrical and mechanical repairs. However it was observed that no written contract was entered into with the contractor,” the report stated.

According to the controlling officer’s submissions, the committee was informed that the London mission was one of the business missions and the first secretary protocol spent most of the airtime at the airport receiving VIPs and other visitors, the ministry had requested for retrospective authority from Cabinet office.

The committee was also informed that the mission had engaged excess staff without authority and the ministry had taken note of the additional requirement and had since regularised this in the revised Foreign Service regulation and conditions of service.

The controlling officer informed the committee that the outstanding bills were cleared and on the payment of rentals above the mission staff entitlements, an amount of US$31,246.21 had since been recovered from the officers leaving a balance of US$6,972.71.

The report also stated that the committee was informed that the advance that were paid while others were running were necessitated by exceptional personal problems such as illness, deaths in the families of the affected officers and school fees.

It stated that the mission had however taken note of the irregularity and had since stopped the practice and all advances had been recovered.

The report also stated that the ministry was liaising with the Ministry of Finance to have the two motor vehicles boarded and this would require constituting a special board of survey, which would also be required for the unserviceable stores.

On the irregular engagement of a contractor, it stated that the observations by the Auditor General were correct and although no written contract was signed for rehabilitation of the Chancery, the mission relied on the granting of tender authority from the Ministry of Works and Supply.

However, as recommended by the previous PAC report for the financial year 2005 on property management, all heads of missions had been urged to engage contractors with formal agreements.

Labels: AUDITOR GENERAL, PAC

posted by MrK @ 3:52 AM